Asked by Micah Jones on Jul 20, 2024

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Explain the difference between cash and cash equivalents.

Cash Equivalents

Temporary investments which can quickly be converted into specific cash sums and have a negligible risk of value fluctuation.

  • Explain the foundations of internal control, encompassing cash management and the application of a voucher system.
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Arslan ArshadJul 24, 2024
Final Answer :
Cash includes currency,coins,deposits in bank accounts,checking accounts,and savings accounts..Cash equivalents are short-term investments that meet the two specific criteria of being readily convertible to a known cash amount and being sufficiently close to maturity so that the market value is not sensitive to changes in interest rates.Examples of short-term investments include certificates of deposits and government treasury bills.